Cuomo To AIG: Give Me Information Or Face Subpoenas, Court

UPDATE 4:28 P.M.: As New York Attorney General Andrew Cuomo's 4 P.M. deadline has not been met, he will be issuing subpoenas. "Four o'clock has come and gone and we will be issuing subpoenas immediately," Cuomo said on a conference call. "I believe in transparency and disclosure ... this is taxpayer money ... We do want fairness -- we don't want absurd use of taxpayer money."

"The whole notion of performance bonuses is oxymoronic when it comes to AIG," he added. "It's adding insult to injury." He questioned why AIG claims their hands are tied. "Then let me see the contract, and let me see when you signed it and what the expectation was when you signed it," he said. He is looking into charges of fraudulent conveyance.

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New York Attorney General Andrew Cuomo is demanding detailed information as to who at AIG will receive controversial bonuses and whether those individuals were involved in any way with the insurance giant's meltdown and subsequent need for taxpayer bailout funds.

In a letter directed to AIG's government-appointed CEO, Edward Liddy, and the company's board, Cuomo brings another tool to the push to get AIG to drop the $165 million in bonuses awarded to senior executives: the power of subpoena.

"Taxpayers of this country are now supporting AIG, and they deserve at the very least to now how their money is being spent," reads the letter. "And we owe it to the taxpayers to take every possible action to stop unwarranted bonus payments to those who caused the AIG meltdown in the first place. If you do not provide this information by 4:00 P.M. today, we will issue subpoenas and seek, if necessary, to enforce compliance in courts."

Cuomo's office had previously requested a "list of individuals who are to receive payments" under the AIG retention plan, "as well as their positions at the firm." But the request was rebuffed. They are now asking for a "description of each individual's job description and performance at AIG Financial Products," as well as contracts "you now claim obligate you to make these payments." Cuomo also wants a "list of who negotiated these contracts and who developed this retention plan so we can begin to investigate the circumstances surrounding these questionable bonus arrangements."

The goal, according to the letter, is to determine whether any bonus recipient was "involved in the conduct that led to AIG's demise and subsequent bailout," whether those individuals are essential to the company's future, and "whether such contracts may be unenforceable for fraud or other reasons" or considered "fraudulent conveyances under New York law."

"We were disturbed to learn over the weekend of AIG's plans to pay millions of dollars to members of the Financial Products subsidiary through its Financial Products Retention Plan," reads the opening of the letter. "Financial Products was, of course, the division of AIG that led to its meltdown and the huge infusion of taxpayer funds to save the firm."

Comments

[Samalabear]

It seems that while Washington fiddles and grandstands their outrage at AIG and not long ago BOA -- maybe still BOA -- Cuomo is out there digging for information, asking the hard questions and issuing subpoenas -- first for Merrill, then BOA and now it's going to be AIG. Yes, he has a full plate and he is not getting much help from the Feds, or so it seems.

[datupuki]

Cuomo is all about grabbing the lime light so he can be Governor in 2012. Please just let these people have their well earned bonus. If it was your bonus you would want it eh?

[grumpygranny66]

I think ALL of those AIG cr.m.i.nals should be put in-front of a firing s.q.u.a.d ,and WE the American people should be the e.xe.c.u.t­.i.o.n.e.r­.

[freelyb]

I hope and pray that we are coming into a time when good moral moves are good career moves. Thanks, Mr. Cuomo. Voters will remember this.

[KillTheMessenger]

Cuomo going for major or senator? Anybody knows?

[IowaKid]

Let me see what is good for UAW is NOT got enough for Execs that caused this mess. Is there any justice in this country?

[garymc8]

STEAL BACK THE MONEY THEY STOLE FROM AMERICA. IT DOES NOT MATTER HOW YOU STOP THEIR BONUSES. YOU DON'T NEGOTIATE WITH A BANK ROBBER AND YOU DON'T NEGOTIATE WITH CORPORATE CRIMINALS EITHER. TAKE IT AWAY. EXECUTIVE ORDER WILL DO FINE, THANK YOU VERY MUCH FOR THE EXPANDED EXECUTIVE POWERS gwbush. THEN SEND THEM ALL TO JAIL FOR GRAND THEFT, FRAUD AND EMBEZELMENT. HANG THE FIRST THREE TO SCARE THE OTHERS INTO TALKING. WATERBOARDING ANYONE? WE'LL GET THE TRUTH.

[linton]

It's a shame what a few people want to do in times like these. Keep the pressure up Mr. Cuomo.

[scarecrow11]

While you're at it, Mr. Cuomo, maybe you could look into this:

http://michaelfury.wordpress.com/2008/08/20/the-ghost-in-the-machines-the-mystery-of-the-wtc-hard-drive-recoveries/

[grumpygranny66]

WOW!!!! Very interesting indeed.

[Lillopa]

socialism is not a bad thing, but "corrupted capitalism" is, you think?

[Lillopa]

AIG why are they not giving names? Why is AIG not criminally charged? Who was the ring leader in this fraud stealing charges stealing billions??? AIG same as Madoff just a twist in the game, right? Men or woman were given bonouses to do what they did?

[Merg]

SOCIALISM...is not a dirty word..although right wing pundits would make it so. The term SOCIALISM has been poortly defined and used by the right wing to scare ordinary people. These people are already scared by the loss of hope. These people have worked and saved to protect their own families only to have their money stolen by (Capitalist) Wall street.
These people are the Middle Class, supply manager who is raising a family of 4, invested in the company's 401K, put money in savings. lives in a 3 bedroom house in the Midwest. Now he/she finds himself losing a job(and therefore losing his health insurance) losing the money invested in his 401K, finding his savings at risk, realizing that unemployment payments will last only 6 months, unable to get another job right now, college tuition is due and rising, his wife and children can't find jobs....and now...he is diagnosed with Diabetes.
He did everything right but now stands to lose everything and leave his family bereft.
Yet, the Repugs would still seek to scare people like him with the idea that Socialist policy is a bad thing. (Never saying that Social Policy could guarantee his health needs, educate his children and put food on the table...what a terrible thing that would be) In the absence of such social policy, his money would go only to those deeply deserving RICH people who manipulated the system and stole his earnings in the first place. How sad.

[TheArtisan]

I second that!

[UpstateNY]

I read that the people in Europe, whose economy is in as bad shape as ours (maybe worse) are not stressing - precisely because they are not going to lose their health insurance or their retirement or the ability to pay for their children's education.

The Republicans keep accusing Obama of "European socialism" - I say what is wrong with that?

[freelyb]

Excellent real-life synopsis of what most of us are facing. This is the reality. Will enough red and blue thinkers alike be able to work together to turn things around? We've got to get a grip and focus on what's important...

[Merg]

Notable...El Salvador..whom our American leaders have tried to prevent from electing a 'leftist-socialist" gov't for the past 17 years has finally elected just such a Gov't.
Average people see the need for a Gov't that, provides the VERY basic needs of the people it purports to serve. That is why Leftist, socialist (no, not communist) candidates succeed in the overwhelming majority of countries, where such candidates run. Think about it.
It may be anathema in America to think about socialism (and... always the term...soc­ialism...i­s inaccurately defined...but people in countries where (American installed or protected) dictatorships exist....the people prefer a more fair and, indeed, socialist country. They don't even mind having to pay higher taxes for that security. They seem to recognize that the paying of higher taxers for these securities is money well spent. Today, more than ever, they are proved to be correct. This is why European people are not in panic to the degree that American people now are.

[Merg]

One solution...seem to me.. is to BREAK UP companies like AIG. The gov't has the power to reduce the size of these behemouth companies down to more manageable units. Then, each unit is no longer TO BIG TO FAIL. Then the gov't can finally get some accountability out of these companies.
I, for one, do NOT FEAR the word socialism because, for all the panic that is currently present in America...the same level of panic is not present is countries (yes, France and others) where their citizenry can depend on the fact that....even if they lose a job or lose the money they have invested...they know that they can still get Health Care, they won't starve, and that their children will still be educated through the college level. For many in this country where this is not the case...that would be an enourmos relief and comfort.
.

[tlgeiger62]

Mr. Cuomo ... thank you for all that you are doing in this and all the other matters currently on your plate. I realize your cup is, indeed, running over with all the scam artists and criminals you seem to be single-handedly going after.